An Act to authorize sports wagering in certain licensed alcoholic beverage retailer establishments.

Be it enacted by the Legislature of the State of South Dakota:

Section 1. That   42-7B-4 be AMENDED:

42-7B-4. Terms used in this chapter mean:

(1) "Adjusted gross proceeds," except in the case of the games of poker, gross proceeds less cash prizes. In games of poker, the term means any sum wagered in a poker hand that may be retained by the licensee as compensation which must be consistent with the minimum and maximum amount established by the commission;

(2) "Advance deposit sports wagering," a method of wagering on sporting events in which an eligible individual may, in an account established with a licensed operator, or route operator, or licensed affiliate business, deposit money into an account and use the balance to pay for bets placed on the premises of a licensed gaming establishment as approved by the commission in the city of Deadwood or within the interior of a licensed affiliate business;

(3) "Associated equipment," any equipment or any mechanical, electromechanical, or electronic device, component, or machine, or any combination thereof, that is used remotely or directly in connection with gaming or any gaming device;

(4) "Associated equipment manufacturer or distributor," any person who designs, assembles, fabricates, produces, constructs, sells, leases, distributes, or otherwise prepares a product or component of any associated equipment;

(5) "Bet," an amount placed as a wager in a game of chance or on the results of a sporting event or a contingency during a sporting event or the performance or nonperformance of an athlete or competitor during a sporting event;

(6) "Blackjack," a card game played by a maximum of seven players in which each player bets against the dealer. The object is to draw cards whose value will equal or approach twenty-one without exceeding that amount and win bets, payable by the dealer, if the player holds cards more valuable than the dealer's cards;

(7) "Cheating," any attempt to alter the elements of chance, method of selection, or criteria that determines the:

(a) Result of a game;

(b) Amount or frequency of payment in a game;

(c) Value of a wagering instrument;

(d) Value of a wagering credit;

(e) Result of a sporting event or an event within a sporting event; or

(f) Performance or nonperformance of an athlete or competitor during a sporting event;

(8) "Cheating device," any computerized, electronic, electrical, or mechanical device, or any software or hardware, or any combination thereof, that is designed, constructed, altered, or programmed to obtain an advantage at playing any game or placing any bet that is offered by a licensee, including a device that:

(a) Projects the outcome of the game or bet;

(b) Keeps track of cards played or cards prepared for play in the game;

(c) Tracks play and analyzes the probability of the occurrence of an event relating to the game or bet; or

(d) Tracks play and analyzes the strategy for playing or betting to be used in the game except as may be made available as part of an approved game or otherwise permitted by the commission;

(9) "City limits," the boundaries of the city of Deadwood as they existed on January 1, 1989;

(10) "Collegiate sporting event," an athletic competition or event between two or more colleges or universities;

(11) "Commission," the South Dakota Commission on Gaming;

(12) "Craps," a game in which the players place bets on the outcome of the roll or series of rolls of a pair of dice;

(13) "Fraudulent scheme," a dishonest or deceptive plan or arrangement used or intended to be used to play a game or slot machine or place a bet, that gives any person an advantage when playing a game or slot machine, or placing a bet;

(14) "Fraudulent technique," a dishonest or deceptive procedure or method of playing a game or slot machine, or placing a bet that gives any person an advantage when playing a game or slot machine, or placing a bet;

(15) "Gaming," limited card games, slot machines, craps, roulette, keno, and wagering on sporting events, as allowed and regulated by this chapter;

(16) "Gaming device," a poker table, a blackjack table, a slot machine, a craps table, a roulette table, or a keno number selection device;

(17) "Gaming employee," any person twenty-one years of age or older employed by an operator, retailer hosting gaming, or sports wagering services provider, who works directly with the gaming portion of that business and who must hold a support license;

(18) "Gaming equipment," any equipment used in gaming that is allowed by this chapter and which requires licensing;

(19) "Gaming license," any license issued by the commission pursuant to this chapter which authorizes any person to engage in gaming within the city of Deadwood, or within the interior of a licensed affiliate business;

(20) "Gaming property owner," any person other than a licensed retailer who owns real property where licensed gaming is conducted within the city of Deadwood. The term, gaming property owner, does not include any person who owned real property where licensed gaming was conducted within the city of Deadwood prior to January 1, 2010;

(21) "Historic restoration and preservation," the restoration and preservation of the city of Deadwood to maintain its historical background, cultural heritage, and necessary supporting infrastructures;

(22) "International sporting event," an international team or individual sporting event governed by an international sports federation or sport's governing body, including sporting events governed by the International Olympic Committee and the International Federation of Association Football;

(23) "Keno," a game in which players place bets by marking their selections on a blank ticket form with eighty numbered selection boxes and the outcome is determined by a number selection device;

(24) "Key employee," any executive, employee, or agent of a gaming licensee having the power to exercise a significant influence over a decision concerning any part of the operation of a gaming licensee;

(25) "Licensed affiliate business," any establishment licensed to sell alcoholic beverages pursuant to subdivision 35-4-2(4), 35-4-2(6), 35-4-2(13) or   35-4-111, which forms a partnership with a licensed gaming establishment for the purpose of offering customers within the interior of the alcoholic beverage-selling establishment the opportunity to wager on sporting events through the system located in the licensed gaming establishment;

(25)(26) "Licensed gaming establishment," any premises licensed pursuant to this chapter where gaming is conducted;

(26)(27) "Licensee," any person licensed under this chapter;

(27)(28) "Licensing authority," the South Dakota Commission on Gaming;

(28)(29) "Limited card games," any card games, including poker, blackjack, and variations of poker and blackjack, that are authorized by this chapter and regulated by the commission;

(29)(30) "Minor league sporting event," a sporting event conducted by a sports league that has not been classified by the commission as a premier league in the sport;

(30)(31) "Net municipal proceeds," the amount remitted to the city of Deadwood by the South Dakota Commission on Gaming;

(31)(32) "Operator," any person who places poker tables, blackjack tables, slot machines, craps tables, roulette tables, keno number selection devices, or accepts or redeems bets, in the person's own business premises;

(32)(33) "Poker," a card game played by players who are dealt cards by a nonplayer dealer. The object of the game is for each player to bet the superiority of the player's own hand and win the other players' bets by either making a bet no other player is willing to match or proving to hold the most valuable cards after all the betting is over. Poker includes draw, stud, low ball, or any combination thereof;

(33)(34) "Professional sporting event," a sporting event, other than a minor league sporting event, in which two or more persons participate and receive remuneration in excess of their out-of-pocket expenses for participating in the event;

(34)(35) "Retailer," any licensee who maintains gaming at the licensee's place of business within the city of Deadwood for use and operation by the public;

(35)(36) "Retail space," the area where the retailer's business is principally conducted;